Coupons are great. They really do help you save a lot of money if you have the time (and remember) to use them. This weekend the retailers appear to be circulating coupons around the internet and through the mail like crazy. They are offering you the sales now so that when Christmas arrives they can charge full prices.

A lot of people believe that taking the time to use a coupon and find a coupon is not usually worth the hassle, but this is not always the case and in the long run using coupons will add up to a significant amount of money. According to an article from our partners at MainStreet.com, the mom behind the website www.couponmom.com has estimated that she has saved about $72,000 in the past 15 years that she started using coupons. That is a huge amount of money!

Here are some tips that may benefit you from your coupon use:

Keep Your Coupons in Your Car or Purse – Leaving your coupons at home will never be beneficial. Put them somewhere that you will always have with you such as in your car or your purse/wallet. Remembering the coupon before you go out to make your purchases is obviously the key to your success! Say the coupon is only $0.45 off of a can of soup at the grocery store, if you left it at home there is no point in going home to get it because the value isn’t great enough. However, if you have it in the car running out to grab it might be beneficial towards your savings over the long run.

Be Flexible – Usually coupons specify certain dates or brands. Try to be flexible especially when it comes to your groceries. I know many people are geared towards brands because they think that they taste better, but usually store brands are a much better value for your money.

Don’t Purchase Unnecessary Items – With coupons this is huge. Often times people that do use coupons often get sucked into purchasing items just because they have that coupon. If it is for something at the grocery store that you aren’t sure whether you will enjoy, don’t get it! Unless you are going to eat the food it is really just a waste of money. The same goes for clothing stores, don’t use a coupon unless you are purchasing something you need or something you know you will wear.

Open Up a Store Card – No, I do not mean a credit card. I’m talking about a customer card such as that which you would use a CVS to get savings on every purchase. Why wouldn’t you open one of these cards? They are free and can save you a lot of money. I know that on each receipt you get from CVS it tells you your yearly savings at the bottom of the receipt and how much you saved on that purchase. It really makes you feel great! Also, with almost every purchase I get a few coupons attached to my receipt. Although I may never use all the coupons (and typically throw a lot away because they won’t relate to what I need) there are always some that will give me some great savings. Plus, each month you get money back towards any purchase at CVS. Obviously each store card is a little bit different and has different deals to offer, but it is definitely something that is beneficial and only takes a few minutes to sign up.

With the economy the way it is, anyone could use a dollar or $20 extra during the week. I mean we aren’t all lucky enough to win the lottery (although that’s also another great way to save)! Each coupon may only seem like a small amount of money, but if it is something you need (food) or even just something you want (clothes, shoes, etc.) saving money on every item here and there will definitely benefit you in the long run. You just need to take a little time and put in a little bit of effort to see your savings add up.

Photo: Jane M. Sawyer

When going out to the malls and restaurants this past weekend, you would have no idea that the country is in a recession. You can hardly find a parking spot and getting into a popular restaurant on a Friday or Saturday night was almost impossible. So, if nobody has the money to spend…why is everyone out spending it?

Let’s be honest, we can’t cut spending out of our lives, it just isn’t that simple. With the holidays just around the corner, people are feeling the crunch now more than ever and are trying to find ways to deal with it.

Some reasons people might be spending now include…

Spread Out the Spending – Spending earlier will help spread out the costs (and the bills). A lot of people get overwhelmed during the holidays because when it is all over the bills that they have accrued are more than they want to deal with. Spending a little bit earlier and spreading out the purchases allows you to pay off some of your bills before more add up on top of it.

Shop the Sales – Closer to Christmas the sales will no longer exist. Shopping the sales now can help you save a little bit of money without putting too much of a hole in your pocket. Just remember that if you are shopping the sales for Christmas, not all items people will want by the time it comes if you purchase them so early. Although clothing may be on sale now, there will usually be another shipment of brand new styles and colors right before Christmas. However, things like basic clothing for work aren’t always as trendy and are always great to buy when on sale.

Treat Yourself – People are spending right now to give themselves a treat. It isn’t easy to deal with a recession and eventually you need to let some of that worry go. Spending and going out for dinner allows you to continue to live your life and enjoy a night without worry. Treating yourself is something you need to do. You wouldn’t survive just worrying about how the economy is going to do and if things will eventually turn around. Taking a night out for yourself and going to dinner will be beneficial, just remember to take home those leftovers for lunch at work!

Needs vs. Wants – Everyone has needs, so all spending cannot come to a halt. Retailers are struggling even if it doesn’t appear that way. When people go out to buy things that they need, they also like to look at things they might want even if they don’t currently have the money to buy it. The stores may seem really full, but it doesn’t mean everyone is heading to the checkout counter.

Having a Plan – Going out with your kids or friends that you might be buying Christmas presents for in the near future will help you to plan your spending. You will be able to get a grasp for what they might like for Christmas and be able to add this into your budget. Going out with a plan in mind around the holidays will allow you to stick to your plan and not buy things that aren’t necessary.

The Weather – So far so good. At least for most parts of the country, the weather has been fairly mild for this time of the year. Especially this past weekend in the New England area, the temperatures were warm and definitely got people out. Possibly people are out trying to get things done before the colder weather hits and it is no longer fun to leave the warmth of your home.

So, for whatever reason people might have they are definitely swarming the stores and restaurants on the weekends. My suggestion is shop and go out to eat during non-peak times if you have the chance, because when the weekend hits everyone is out! Also be sure to check out an article from our partners at MainStreet.com on How to Ride Out a Recessionary Economy.

Photo: Álvaro Daniel González Lamarque

Jobless rates are soaring.  Merck just announced a 7,200 layoff.  BestBuy won’t be hiring 10,000 seasonal workers.  However you slice it, the current job picture looks bleak.  You should never assume you’re safe at your job.  Just as you (should) have a plan for your future and a plan for emergencies, you need a plan for the case of a layoff.

1. Get Your Resume Ready
Dust off your old resume and take a look at it with a fresh eye.  Add your current job and any new accomplishments.  Be sure to have others read your resume;  let friends and family take a look and give feedback.  If you can afford it, the best option is to hire a professional resume writer. Make sure it is both print ready, and ready to email and post all over the net.

2.  Join Professional Networking Sites
LinkedIn is the de facto business networking site.  Your LinkedIn profile lists your professional accomplishments, and then allows you to connect with former colleagues, clients and partners, and once you do, you are connected to their connections as well.   Not only can you be found on LinkedIn by current and former coworkers, but by people looking for someone with your skill set to fill an open job position in a new company.

There are several other business networking sites, such as: Ryze.com; MeetTheBoss.com is focused on the financial sector; LPN.org is specific to professional Latinos; and Doostang.com

3.  Ready Your 401k
If you have less than a specified amount – usually $10,000 – and you leave your job because of voluntary or involuntary reasons, you will be forced to move your retirement dollars.  This does not mean you can take the money and run!  If you wait and get “cashed out” of your 401k you will not only owe taxes on the whole pot, but also a 10% penalty.  To avoid this, open a traditional IRA and roll the 401k money into the new account.  These accounts are also aptly named “rollover IRAs.” Many of the big mutual fund companies such as Vanguard and Fidelity can walk you through the process on their websites.  If you are confused, contact a Financial Advisor.

If you have a loan on your 401k you need to know the rules about repayment upon termination.  Some companies will require you to repay the loan immediately, while others will work with you to create a new repayment schedule.  Either way, it’s better to know ahead of time.

4.  Beef Up Your Savings
By now everyone should know saving three months’ expenses is the minimum goal.   If you are feeling layoffs coming at your company, this is more important than ever.  To have a sufficient cushion will make all the difference when the dreaded news comes down.  These days you can’t rely on a severance package.

If you don’t have at least a few months’ expenses saved up, and you anticipate layoffs, now is the time to take a serious look at your finances and figure how to make extra cash – stat.

5.  Have a Back Up Plan
Visualize yourself without your job, after two months of looking and no bites on your resume.  What will you do when your savings run out?  Now is the time to think about, and come to terms with, the idea of taking a part-time job at a retail store, or signing up with the local temp agency.  These are viable ways to find work to tide you over until the next opportunity presents itself.

No one wants to lose their job.  But with a bit of planning and foresight you can prepare yourself for the worst.

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By Michele Steinberg, FinanceGrrl

Photo: Dani Simmonds

In these strenuous economic times, it could be advantageous for savers and investors to take another look at gold.  A brief primer on the gold standard:

•    The Coinage Act of 1792 established one United States Dollar as consisting of 371.25 grains of pure silver, but was soon after replaced with a gold dollar consisting of 25.8 grains of gold.

•    From 1900 - 1933, after the passing of the Gold Standard Act of 1900, gold was coined by the US Mint, and our paper currency was tied to the amount of gold held in the US Treasury reserves.

•    In 1933, as response to the Great Depression, Franklin Roosevelt required all people exchange their gold coins for money that was not redeemable in precious metals.  Gold was taken out of circulation and kept by the government in the form of bullion.

•    In 1971 Richard Nixon signed a policy that took the US dollar off the gold standard in its entirety.

The simplest result of the loss of the gold standard is that when the dollar is weak, gold is strong.  As it stands today 1 Troy ounce of gold is worth well over $800 – closer to $900.  That’s bad for the dollar, but good for gold.

Why should you invest in gold?

1.  Supply is low and demand is high
In September of 2008 the US Mint ‘temporarily’ suspended sales of one-ounce American Buffalo Gold Coins, confirming that “demand has exceeded supply.”  Kitco.com of Toronto has been forced to stop selling “until further notice” one- and ten-ounce Gold Bars.

There are currently somewhere between 120,000 and 140,000 tonnes of gold ‘above ground’ in the world. About 30,000 tonnes of the world’s gold [20-25% of above ground inventory] is held in central bank vaults belonging primarily to the USA, Germany, IMF, France, Switzerland and Italy.

Gold is difficult to find in commercial quantities. Gold mining takes a long time (between five and ten years) which presents a struggle for supply to keep up with demand.

2.  The risks are comparatively low
Ownership of physical gold has no need for the FDIC.  Keep it in a safe, secure location and if (God forbid) all the banks in the country fail, you have no need to worry about your investment in gold.

Compared to bonds gold has no risk of non-payments; or compared to stock there is no risk of a company going out of business.

3.  It has real value
Gold can be purchased in mutual funds and exchange traded funds that invest in bullion, such as Central Fund of Canada (CEF) or it can be purchased in the form of actual coins.  Coins are an interesting investment as they have an intrinsic numismatic value for collectors as well.

A recent poll of the London Bullion Market Association resulted in an estimate of gold prices increasing to $1,200 in 2009.  If you have extra funds to diversify your portfolio, now could be a great time to get into gold.

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By Michele Steinberg, FinanceGrrl

There has been much said about this current market, and some of it has been frightening.  Is there a silver lining?  Stocks took a horrifying 777-point dive on Monday, but made a decent recovery on Tuesday.  As we near the passing of the “bailout package” by the House, the Senate having already given the ‘yea’s the vote, more good news could be slipping out.  Crude oil continues to trade below $100.  Big investors <cough>Buffet<cough> are poised to grab some serious bargains.  Is now a good time to buy?

Let’s look at a bit of history:
In October 1990, when hindsight shows us we were in a recession, we were experiencing many other similarities to today: oil prices were near 10-year highs; the US economy had slowed to 0.4%; there was a Savings & Loan “bailout” (sound familiar?); Alan Greenspan, the then Chairman of the Fed, was talking about “stress growing for banks”; and consumer prices jumped 0.8% month-over-month.  The result?  Six months later the S&P 500 was up 23%.

If you do have extra cash to invest, what should you look at?

1. Consumer staples
The industries that manufacture and sell food/beverages, tobacco, prescription drugs and household products have historically fared well during recessions.  Regardless of the stock market, people will still need to eat, drink, and indulge in the cheap(er) vices of alcohol and tobacco.  The companies that fall in this category are also the early leaders in a market turnaround.  They’ve been beaten down the last few months and many are trading near 52-week lows.  A few examples?  General Electric (GE), Procter & Gamble (PG), and Kraft (KFT).

2. Sin Stocks
Alcohol and tobacco are mentioned above in Consumer staples (I personally see wine and beer as staples, not sins) but are also considered “sin stocks”.   Some great examples of beer stocks are Molsen (TAP), Boston Beer Co. (SAM), and Companhia de Bebidas das Americas, or AmBev - the company that has made the deal to acquire Anheuser-Busch Companies, Inc. (ABV and BUD, respectively).   Some other so-called “sinful stocks” are gambling.  When the economy is down, people tend to feel in a gambling mood.  Wynn Resorts (WYNN) is currently trading near 52-week lows.

3. New technologies
Always had the urge to invest in solar power?  Hear something once about wind energy?  Do a little bit of research into your new technology of choice.  Check out First Solar (FSLR), Sunpower Corp (SPWRA), American Superconductor (AMSC), and FPL Group (FPL).

After each of the 13 recorded recessions since 1931 stocks have rebounded, usually with double-digit increases.  So if you have the discipline to do the research, the funds to invest, and the time to ride out the storm, investment opportunities can be found.

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Application fee for citizenship = $595.00
Fingerprints/background check = $80.00
Gas to citizenship ceremony/oath = $15.00
New US passport = $100.00
Becoming a US Citizen and singing “Proud to be an American” with 250 other people from all over the world…PRICELESS.

With the economy in a recession and people struggling to make ends meeting, I was surprised by how many people were willing to set aside almost $1,000 to become a US citizen.

According to MSN.com, about 7.7 million people applied for different immigration benefits this past year. This number is up 1.4 million from the previous year. The money that is generated from applying for citizenship goes to paying the employees, improved screening/fingerprinting, and other things that are needed to support the whole process.

The application fee alone has increased by $330!! I know that some people have endured hardships and waited a long time to become citizens, but I am still surprised that many would not wait until this fee decreased again, making it more affordable (if this will ever happen).

After applying for citizenship at the beginning of June 2008, my process was pushed through the system extremely quickly, making me a naturalized citizen on September 29th with just enough time to register to vote on November 4th.

But starting this week, people applying for citizenship will have to endure a new citizenship test. I remember in high school our teacher handed us a “pop quiz”…when we received this exam we all stared at it in disbelief knowing maybe 10 answers of about 80 questions. After we had handed them in, she went on to explain that we just took a citizenship exam. All of us were surprised to see how difficult the questions were and that many of us didn’t even come close to passing!

That was the old exam, the new exam that applicants will begin taking on October 3rd has changed quite a lot. Applicants can no longer just memorize the answers; they actually have to understand what terms mean. An example of a question on the old exam would be “What are the 3 branches of the US Government?” and will now be changed to something similar to “Why do we have 3 branches of government?” on the new exam. Not only does this take a lot more understanding of terms and reasoning, but it makes it more difficult for many that English is not their first language.

It is a great privilege to become a US Citizen and is celebrated among many. Although I did not feel any different when I became naturalized this past Monday, I was excited by one fact: I finally get to vote and have a little bit of a say in who becomes the President. This is something that I think many citizens take for granted. MainStreet.com offers a great article which allows people to understand more fully How to Register to Vote and deadlines and requirements that you need to be aware of.

There were several older generations of people at the citizenship ceremony and I realized that some people spend many years of their life saving for that special day. Even in a recession and with many people tightening their belt on their spending, becoming a citizen is not something people are willing to overlook.

Photo: Arker

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Recently with the increase in groceries, people have been looking for ways to cut back and save. Obviously you cannot cut groceries out of your life completely, so you need to find other ways to keep the cost down.

According to Good Housekeeping, the typical American family of four costs about $5 per person for dinner each night. That makes dinner about $20 per night, averaging around $140 a week just for dinner!

There are some simple ways to save on your groceries. Everyone has different things that work for them, here are a few things that have definitely helped me save.

Make a List – Plan your meals for the whole week and make a list of things you definitely need before you head out to the grocery store. This will help you not make impulse purchases. I also find it much harder to go to the grocery store when I am hungry…that is when I buy the most items that I do not need. Make sure to eat something before you leave to suppress that urge to buy! If possible another thing to do is to leave your kids at home. Kids always find items at the grocery store that they want and will bug you until you say yes. Not having them there will relieve some of the stress.

Make Fewer Trips – You will not only save on impulse purchases this way, but you will also be saving on gas. When you make your list, buy items for the whole week. This way you will be making less trips to the grocery store that are unnecessary. Obviously this won’t always work out but it will save you on both gas and time.

Buy Generic Brands – I have just recently accepted the idea of generic brands. Being a marketing major I seem to always fall for the brand name items. The truth is however, that many of the store brand products are very similar if not exactly the same to the brand name items. This can save you a great deal of money. There are still some items that you cannot find a generic replacement for, but for the ones that you can you should give it a try.

Only Buy 1, Unless You Need More – I get caught up in this a lot. For the signs that say 2 for $5 you can often times just buy one and it will still only cost you $2.50. This is not always the case, but I have found that more often than not it is. Once in college we bought 10 boxes of bagel bites for $10 just to find out they would have been $1 anyway! We definitely learned our lesson when we got sick of bagel bites fast.

Store Cards – Make sure you get a savings card for the grocery stores that you shop at the most. They are free and almost always save you money! I can never understand the people that don’t want to open a card just because they don’t want to fill out the paperwork. In the long-run you will definitely save a lot of money. You can even see your savings at the bottom of your receipt.

Choose Food Wisely – Things like the rotisserie chickens that they sell at the grocery store are extremely convenient, but they can be fairly expensive. If you have the time to cook for your family, cooking a chicken of the same size can save you about $5 and only take about an hour to make. Usually the pre-cooked food is extremely expensive compared to if you cooked it yourself. Although sometimes these can be convenient and quick, it is not always the best price.

Everyone has their own ways of saving but now is definitely the time to make sure you are making the most of it. Although coupons are great, they will only go so far and you should find other ways that you can save to keep your grocery bills down. Everyone wants to cut back as much as possible right now, find which ways work best for you!

Photo Courtesy of Álvaro Daniel González Lamarque

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For young generations today, the pressure to spend is greater than ever. Not only spending on clothes and electronics, but also spending on eating out and drinks with your friends.

But the pressure to save is also there. All people hear on the news is about saving and how difficult it will be to retire if you don’t start young.

Young generations are feeling the pressure to save early while still trying to enjoy their lives and not always stress about money. Personally, I graduated college this year with NO credit card debt, something I am extremely proud of. But for many of my peers, this just isn’t the case.

I understand that starting to save for retirement ASAP is crucial; I just wish it was a little bit easier and less stressful. Here I’m sure my mum would say – “Hannah, life isn’t easy!” But honestly, with student loans, bills, rent, food, gas, and other expenses…what is there actually left to save?

The key aspect is to find a balance between saving and spending. Something that isn’t always easy to do (and often times it feels impossible). And yes, sometimes this means that you have to say “no” to going out for a night on the town or to concert.

Putting money into a 401(k) account as soon as you start a salaried job is a great idea (and a good starting point for your retirement savings). It doesn’t matter how little you put towards it at first, at least this is moving you forward. Often times employers may even match your savings up to a certain amount. However, once this money is in your 401(k), just forget about it and put it out of your mind. That way you aren’t tempted to borrow the money from this account.

MainStreet.com explains that there are things we can all try to avoid when we are trying to continue to save even when the economy is in a downturn.

Here are their top 5 things NOT to do:
1. Don’t borrow from your 401(k) unless you absolutely need the money.
2. Don’t ignore: (a) car or mortgage payments, (b) student loans, (c) credit card bills, or (d) all of the above.
3. Want to eat out or play a few rounds of golf? Okay, just don’t put it on your credit card.
4. Don’t make pricy purchases, even if there is a sale or your fancy new toy might be a cost-saver.
5. Don’t quit your job unless you have another job lined up.

For the full article (and their explanations), click here!

Believe me; I understand what it is like to be stressed about saving. Being in the young generation just out of college when the job market and economy aren’t doing so well is not the greatest, but we just have to push through it.

My advice is to take it day by day. You can think about retirement saving before you even have a job. Just make sure when you get that job that you are saving as soon as is possible for you. Don’t worry too much! It definitely won’t help the situation. Somehow we will all get through this together and retire happily ever after!

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A recession is never easy for anyone. Trying to make ends meet while still saving for retirement can be extremely frustrating. The key is to try and keep saving regardless of how much you would like that extra cash now instead of later.

It is possible that by the time people retire they may have seen around 5 or more downturns in the market leading to a recession. People must take the right steps to ensure that they can make it through these recessions while still saving for retirement.

Newsweek suggests 3 things to increase your savings: (1) working longer, (2) keep contributing to your retirement savings, and (3) delaying your social security. If you do these 3 things, it can increase the purchasing power of someone around 62 years of age by 30%.

However, sometimes people don’t have a choice and have to retire earlier than they would have liked. If this is the case for you, try to find some part time work to keep things going. Another way to bring in some short-term cash during a recession could be to go through all of your belongings and sell some things at a garage sale. Although this may not generate a ton of cash, it can be helpful when times get tough.

Whether you are young or almost at retirement age, planning is still a must. There are things that you should and should not do during a recession that will help you out in the long-run.

DON’T SPEND MONEY YOU DON’T HAVE
Don’t spend before you actually get the money. Spending before the money is in your pocket is not a good way to do things. Putting things on your credit card and overspending can put you in a lot of debt that you are unable to get yourself out of. This will also hurt your credit score which can affect you in the future.

DON’T BE LATE WITH PAYMENTS
Being late with any type of payments (student loans, credit cards, etc.) will also affect your credit score and hurt you.

KEEP SAVING
This is huge even if it might be hard to do sometimes. Even putting a small amount of your pay check towards your 401(K) can be extremely beneficial in the long-run. Not only does this help you save on the money that gets taxed, but you are also saving towards your retirement. However, try not to borrow money from your 401(K) until you retire.

According to an article on MainStreet.com, if you borrowed $5,000, you’ll have to repay $1,000 per year in four $250 payments. And further, if you don’t pay all the money back it will be considered taxable income and you will also pay a 10% penalty fee. This is something that you really don’t want to have to deal with!

Although times are tough and groceries and gas are still rather expensive, the key is to stick it out. Everyone is in your shoes and struggling just as much. Some don’t have jobs and are searching at a time when unemployment is at its highest in the past 4 years.

Just remember, try to keep saving! It may be hard to see the benefit in the short-run, but in the long-run you will benefit from your savings in your retirement.

Picture: Michael Connors

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Doom and gloom! You can find it almost everywhere in the financial press these days. How are you bracing yourself? Or are you optimistically looking for the bargains everywhere (like cheaper stocks, for example)?

Here are three tips to shore up the resources:

1. Build your networking skills. Keep your resume fresh and polished (and importantly, in front of folks who may need your expertise). Carry business cards with your contact information at all times. Get yourself listed on LinkedIn and other professional sites. After all, in a free market we are all freelancers.

2. Pick one indulgence a week — and stick to it. Do you fear the stability of your job or income? Then it is doubly important to keep your budget in mind. Use Geezeo’s free tools to create easy-to-see spending targets as part of your budget.

3. Control your food budget. Food: another major budget-buster. Control your lunch spending by packing your lunch. Suggest less expensive restaurants when you go out with friends. At home, cook more and go back to basic staples over more expensive processed and packaged foods.

If you see your retirement savings dropping, or mortgage payments increasing: hang in there. We have to have the downturns to have the upturns.

What tips would you add?